South Yorkshire Housing Association: Social landlord with 5,700 homes in and around Sheffield is downgraded
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South Yorkshire Housing Association, which also incorporates Alliance Housing Association, has 5,700 homes in the county and beyond, the majority of which are social rented properties. It employs more than 550 people and has an annual turnover of £46.5 million.
It has been downgraded by the Regulator of Social Housing, the Government’s watchdog, from grade two to three for both ‘governance’ and ‘viability’. That is the second lowest of four possible grades and means the organisation is failing to comply with requirements but enforcement action or other intervention is not yet deemed necessary.
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Hide AdThe report, published on Thursday, June 8, states that there are ‘issues of serious regulatory concern that the provider is working with the regulator to address’. It describes how an investigation was carried out after the housing association referred itself to the regulator, which found that the financial processes and controls in place had been ‘inadequate’, leading to incorrect financial information being shared with its funders, board and the regulator.
“While SYHA works with its funders to find a solution to the current issue there remains uncertainty over the outcome,” the report states. “There are no immediate liquidity or solvency concerns. However, SYHA’s loss of control has exposed the organisation to potentially serious implications that may impact its future financial viability and so has put its social housing assets at undue risk.”
The report recognises that the housing association has been ‘open and transparent’ during the investigation and was working with the regulator to make the changes required to ensure its long term viability.
What does the decision mean for South Yorkshire Housing association tenants? What has SYHA said?
The regulator does not suggest there will be any impact on the housing association’s tenants but it does state that SYA has put its social housing assets at ‘undue risk’ by not better managing its finances. The housing association has said it is working hard to ‘ensure there is no adverse impact on our customers and partners while we make the necessary changes to strengthen our organisation’.
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Hide AdThe housing association’s CEO, Larry Gold, said: “While we are of course disappointed to not be meeting the regulatory standards at the highest level, we have worked closely with the regulator during the review process and we understand the rationale for the regrade.
“Extensive plans are already well underway to improve our position on governance and viability. These will continue to be our number one priority. Our commitment to working with the regulator to strengthen the organisation’s financial and governance capacity and capability, and to make the changes required to ensure our long-term viability, is recognised in the Regulatory Judgement.
“Since joining SYHA as CEO earlier this year, I have been impressed by the dedication of our workforce and commitment to customers. It is important to stress that the judgement is no reflection on the quality of homes and services provided to those we serve. Furthermore, we will be working hard to ensure there is no adverse impact on our customers and partners while we make the necessary changes to strengthen our organisation.”